Options Trading News

The oil bulls are expanding their horizons to Gran Tierra Energy, which operates in South America.

optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 2,300 March 5 calls for $0.45. Volume was almost 8 times open interest at the strike.

The trader now stands to benefit from a rally in GTE, which has failed to participate in the energy sector's rally over the last three months. Some investors may be worried about the company's strong presence in Colombia, where guerillas have been regaining control of the countryside.

Owning calls would be an effective way to manage that risk because it provides exposure to a rally while costing much less than the shares. See our Education Section for more.

GTE rose 1.59 percent to $4.46 on Friday. It normally only sees option volume of about 100 contracts, but activity was more than 20 times that amount, according to Heat Seeker. Not a single put changed hands in the session.